Attributable Ownership: 49% McEwen Mining, 51% Hochschild Mining
Production – One of the World’s Largest Primary Silver Mines
The San José mine is an underground operation located approximately 20 km north of Goldcorp’s Cerro Negro project in the northwest corner of the Deseado Massif region of Santa Cruz Province, Argentina. San José is 49% owned by McEwen Mining and 51% owned by Hochschild Mining. In 2011, the mine enjoyed one of its most successful years, producing 5,869,517 ounces silver and 80,952 ounces gold (100% basis). The average grade of ore processed during 2011 was 444.0 gpt silver and 5.86 gpt gold. Estimated 2012 production is expected to total 5.7 million silver ounces and 85,000 gold ounces (100% basis).
Cash Costs on a co-product basis during the Fourth Quarter of 2011 totaled US$13.10 per silver ounce and US$689 per gold ounce. These costs on a by-product basis (netting the revenue from gold against the cost to produce an ounce of silver) totaled negative US$1.02 per silver ounce.
Exploration – New High Grade Results
The San José property has not been fully explored. The property encompasses approximately 123,000 acres, and there is good potential for additional resource and reserve expansion. On February 13, 2012, McEwen Mining announced the Pilar vein discovery. Not only are Pilar’s gold grades significantly higher than is currently being mined, but the widths are also much thicker. Highlights from the drilling include:
|
Drill Hole
|
From (m)
|
To (m)
|
Intercept (m)
|
True Width (m)
|
Au (g/t)
|
Ag (g/t)
|
|
SJD 992
|
150.25
|
167.30
|
17.72
|
7.07
|
6.28
|
356
|
|
SJD 996
|
221.0
|
238.55
|
17.17
|
6.07
|
11.33
|
436
|
|
SJD 988
|
173.85
|
195.65
|
21.80
|
8.73
|
26.24
|
922
|
|
SJD 1047
|
263.55
|
271.20
|
7.65
|
6.19
|
24.94
|
395
|
|
SJD 1049
|
278.60
|
281.00
|
2.40
|
2.19
|
17.19
|
262
|
|
SJD 1050
|
276.90
|
278.00
|
1.10
|
0.97
|
18.82
|
308
|
|
SJD 1052
|
259.10
|
260.00
|
0.90
|
0.84
|
13.00
|
2,275
|
|
SJD 1054
|
42.38
|
46.30
|
3.92
|
3.71
|
7.25
|
105
|
|
SJD 1055
|
264.45
|
268.20
|
3.75
|
3.59
|
3.09
|
119
|
|
SJD 1056
|
322.60
|
323.80
|
1.20
|
0.85
|
22.48
|
424
|
In 2012, a total of 110,600 meters ($12 million budget) of diamond core drilling is scheduled at the San Jose mine, of which 68,000 meters will be exploration for new resources and 42,500 will be for infill. This represents more than double of the exploration budget that was completed last year.
In addition to the drilling planned at the San Jose mine, McEwen Mining is planning to drill 20,000 meters of diamond core drilling on its 100% properties adjoining the San Jose mine and Goldcorp's Cerro Negro project.
The drill results on this page were derived from McEwen Mining Inc.’s news release titled " McEwen Mining Announces Attractive Intercepts at the San José Mine in Argentina" released on February 13, 2012 by McEwen Mining. To access the news release click here.
San José mine technical information was derived from the "Technical Report on the San José Silver-Gold mine, Santa Cruz, Argentina" prepared by Eugene J. Puritch, Alfred S. Hayden, James L. Pearson, Fred H. Brown, Tracy Armstrong, David Burga and, Kirstine R. Malloch, dated December 16, 2010. To access the report click here.